New Issue: UBS prices $5.02 million contingent income autocallables linked to three indexes

By Toni Weeks

San Luis Obispo, Calif., May 20 - UBS AG, London Branch priced $5.02 million of contingent income autocallable securities due May 21, 2019 linked to the worst performing of the Euro Stoxx 50 index, the Russell 2000 index and the Nikkei 225 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 8% if each index closes at or above its 75% coupon barrier level on a determination date for that quarter.

The notes will be redeemed at par plus the contingent coupon if all of the indexes close at or above their respective call threshold levels on any of the first 19 quarterly redemption determination dates. The call threshold levels are 95% of their initial levels

If the notes are not called, the payout at maturity will be par plus the final contingent coupon unless any index finishes below its 75% trigger level, in which case investors will be fully exposed to the decline of the worst-performing index.

UBS Securities LLC is the agent. Morgan Stanley Smith Barney LLC will handle distribution.

Issuer:	UBS AG, London Branch
Issue:	Contingent income autocallable securities
Underlying indexes:	Euro Stoxx 50, Russell 2000, Nikkei 225
Amount:	$5,019,700
Maturity:	May 21, 2019
Coupon:	8% per year, payable quarterly if each index closes at or above its coupon barrier level on the determination date for that quarter
Price:	Par of $10
Payout at maturity:	If each index finishes at or above its downside threshold level, par plus the final contingent coupon; otherwise, full exposure to losses of worst-performing index
Call:	At par plus the contingent coupon if each index closes at or above its call threshold level on any of the first 19 quarterly determination dates
Initial index levels:	3,172.72 for Euro Stoxx, 1,102.905 for Russell and 14,096.59 for Nikkei
Trigger/coupon barriers:	2,379.54 for Euro Stoxx, 827.179 for Russell and 10,572.44 for Nikkei; 75% of initial levels
Call threshold levels:	3,014.08 for Euro Stoxx, 1,047.76 for Russell, 13,391.76 for Nikkei; 95% of initial levels
Pricing date:	May 16
Settlement date:	May 21
Agent:	UBS Securities LLC with Morgan Stanley Smith Barney LLC as dealer
Fees:	3%
Cusip:	90272X265

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